Alphabet has become the world’s most liquid company, surpassing the historic Apple record holder. According to the Financial Times analysis, in the second quarter of 2019, the holding company that controls Google has 117 billion dollars at its disposal, while Apple “only” 102 billion.
Having a lot of “money” available has rather obvious benefits (not least prestige), but also some disadvantages. In particular, investors could ask for higher dividends or buy-back initiatives for more aggressive shares.
Moreover, a wealth of these levels tends to attract the attention of authorities and governments, which are not desirable as they tend to result in sanctions.
It is true that Google, like all similarly sized companies, is already very much in the spotlight: Europe, in particular, has already imposed several fines on it, for a total of about 8.2 billion euros in the last two years, and now the US authorities are also being activated. For its part, Sundar Pichai has already said to expect further tightening of the investigation.
In this regard, it is interesting to note that from 2017 to date, Apple has committed itself to reduce its liquidity on purpose, which at the time had reached $ 163 billion (then -61 billion in two years). In the same period, Google / Alphabet has instead earned 20 billion, despite massive investments in land for offices and data centers.
Speaking of parameters for assessing the wealth of companies, it is worth noting that Alphabet is the only company of technological “big four” that has not yet managed to break through the wall of 1,000 billion in capitalization. Apple was the first, followed by Amazon and Microsoft. To date, it is the Redmond company that is the only one left.